Community Health Project, Inc. (d/b/a Michael Callen ... · (d/b/a Michael Callen - Audre Lorde Community Health Center) ("Callen-Lorde"), which comprise the statements of financial

Community Health Project, Inc. (d/b/a Michael Callen - Audre Lorde

Community Health Center)

Financial Statements, Schedule of Expenditures of Federal Awards,

Internal Control and Compliance and Independent Auditor's Reports

June 30, 2014 and 2013

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Index

Page Independent Auditor's Report 2-3 Statements of Financial Position 4 Statements of Activities and Changes in Net Assets 5 Statements of Functional Expenses 6-7 Statements of Cash Flows 8 Notes to Financial Statements 9-23 Schedule of Expenditures of Federal Awards 24 Notes to Schedule of Expenditures of Federal Awards 25 Independent Auditor's Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 26-27 Independent Auditor's Report on Compliance for Each Major Federal Program and Report on Internal Control over Compliance Required by OMB Circular A-133 28-29 Schedule of Findings and Questioned Costs 30-31 Schedule of Prior Year's Findings 32

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Independent Auditor's Report To the Board of Directors Community Health Project, Inc. (d/b/a Michael Callen - Audre Lorde Community Health Center) Report on the Financial Statements We have audited the accompanying financial statements of Community Health Project, Inc. (d/b/a Michael Callen - Audre Lorde Community Health Center) ("Callen-Lorde"), which comprise the statements of financial position as of June 30, 2014 and 2013, and the related statements of activities and changes in net assets, functional expenses and cash flows for the years then ended, and the related notes to the financial statements. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

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Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Callen-Lorde as of June 30, 2014 and 2013, and the changes in its net assets and its cash flows for the years then ended, in accordance with accounting principles generally accepted in the United States of America. Other Matters Other Information Our audits were conducted for the purpose of forming an opinion on the financial statements as a whole. The accompanying schedule of expenditures of Federal awards is presented for purposes of additional analysis as required by U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, and is not a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the schedule of expenditures of Federal awards is fairly stated in all material respects in relation to the financial statements as a whole. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated February 12, 2015, on our consideration of Callen-Lorde's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Callen-Lorde's internal control over financial reporting and compliance.

C New York, New York February 12, 2015

Assets 2014 2013

Current assets:Cash and cash equivalents 7,042,086$ 5,549,862$ Patient services receivable, net 2,545,790 2,478,092 Pharmacy and other receivables 2,390,453 2,010,439 Grants and contracts receivable 1,412,835 1,574,158 Prepaid expenses and other current assets 312,106 47,989 Inventory 876,756 815,961

Total current assets 14,580,026 12,476,501

Restricted cash and cash equivalents 1,500,000 - Property and equipment, net 10,329,893 7,311,329 Deferred financing fees, net of accumulated amortization of $488,557 and $461,415 325,708 352,850 Security deposits 423,862 414,334

Totals 27,159,489$ 20,555,014$

Liabilities and Net Assets

Current liabilities:Accounts payable and accrued expenses 1,700,287$ 2,098,472$ Accrued compensation 1,124,604 926,905 Note payable, current maturities 414,814 354,223 Due to third party, current maturities 159,240 100,088

Total current liabilities 3,398,945 3,479,688

Long-term liabilities:Note payable, less current maturities 4,366,101 3,780,915 Due to third party, less current maturities - 66,666 Deferred rent 439,492 67,739

Total long-term liabilities 4,805,593 3,915,320 Total liabilities 8,204,538 7,395,008

Commitments and contingencies

Net assets:Unrestricted: Undesignated 17,322,957 12,919,318 Board-designated reserve for capital projects and special projects 1,500,000 -

Total unrestricted net assets 18,822,957 12,919,318

Temporarily restricted net assets 131,994 240,688 Total net assets 18,954,951 13,160,006

Totals 27,159,489$ 20,555,014$

Community Health Project, Inc.

Statements of Financial PositionJune 30, 2014 and 2013

(d/b/a Michael Callen - Audre Lorde Community Health Center)

See Notes to Financial Statements.

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2014 2013

Unrestricted revenue:Patient services revenue (net of contractual allowances and discounts) 14,322,555$ 13,125,270$ Provision for bad debts (189,900) (327,820) Net patient service revenue less provision for bad debts 14,132,655 12,797,450

Pharmacy revenue 29,598,706 23,729,885 DHHS grants 1,196,164 837,311 Contract services and other grants 3,926,065 3,765,256 Fundraising and contributions 1,141,340 849,344 Other 265,085 563,043 Released from restrictions 493,050 514,338

Total unrestricted revenue 50,753,065 43,056,627

Expenses:Salaries and related benefits 16,717,624 14,106,407 Other than personnel services 28,202,760 22,705,883 Interest 98,756 230,995

Total expenses 45,019,140 37,043,285

Operating income prior to depreciation and amortization and nonoperating revenue 5,733,925 6,013,342

Depreciation and amortization 442,134 365,170

Operating income prior to nonoperating revenue 5,291,791 5,648,172

Nonoperating revenue: contract services and other grants for capital additions 611,848 755,874

Increase in unrestricted net assets 5,903,639 6,404,046

Changes in temporarily restricted net assets:Contributions 384,356 488,577 Release to operations (493,050) (514,338)

Decrease in temporarily restricted net assets (108,694) (25,761)

Increase in net assets 5,794,945 6,378,285

Net assets, beginning of year 13,160,006 6,781,721

Net assets, end of year 18,954,951$ 13,160,006$

Years Ended June 30, 2014 and 2013

Community Health Project, Inc.

Statements of Activities and Changes in Net Assets

(d/b/a Michael Callen - Audre Lorde Community Health Center)


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Program General and Fund-Services Administrative raising Total

Salaries and wages 10,754,359$ 2,366,190$ 120,363$ 13,240,912$ Employee benefits 2,823,809 621,299 31,604 3,476,712 Consultants and contractual services 813,256 627,737 561 1,441,554 Professional fees - 299,847 - 299,847 Consumable supplies 1,061,157 74,226 6,713 1,142,096 Laboratory and radiology 167,833 - - 167,833 Pharmaceuticals 23,008,023 - - 23,008,023 Occupancy 593,942 162,718 36,749 793,409 Insurance 58,651 96,818 - 155,469 Equipment rental and maintenance 82,769 32,321 3,984 119,074 Telephone 87,335 16,198 3,995 107,528 Printing, publications and postage 13,844 13,373 755 27,972 Travel, conference and meeting 171,161 25,697 3,313 200,171 Dues and subscriptions 26,124 104,839 4,719 135,682 Health promotion 2,283 12,777 4,714 19,774 Interest 89,769 8,987 - 98,756 Other 110,258 325,360 148,710 584,328

Totals 39,864,573 4,788,387 366,180 45,019,140

Depreciation and amortization 401,900 40,234 - 442,134

Total functional expenses 40,266,473$ 4,828,621$ 366,180$ 45,461,274$

Community Health Project, Inc.(d/b/a Michael Callen - Audre Lorde


Statement of Functional ExpensesYear Ended June 30, 2014


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Program General and Fund-Services Administrative raising Total

Salaries and wages 8,956,681$ 2,249,603$ 140,124$ 11,346,408$ Employee benefits 2,178,701 547,213 34,085 2,759,999 Consultants and contractual services 461,258 776,484 450 1,238,192 Professional fees - 212,228 - 212,228 Consumable supplies 946,561 184,165 6,057 1,136,783 Laboratory and radiology 162,528 - - 162,528 Pharmaceuticals 18,500,062 - - 18,500,062 Occupancy 238,335 107,989 30,300 376,624 Insurance 42,279 85,538 - 127,817 Equipment rental and maintenance 82,442 19,759 1,695 103,896 Telephone 74,658 18,625 1,295 94,578 Printing, publications and postage 6,425 22,048 25,221 53,694 Travel, conference and meeting 131,667 6,516 1,658 139,841 Dues and subscriptions 30,401 102,467 3,295 136,163 Health promotion 5,986 - 200 6,186 Interest 205,423 25,572 - 230,995 Other 108,485 103,781 205,025 417,291

Totals 32,131,892 4,461,988 449,405 37,043,285

Depreciation and amortization 331,940 33,230 - 365,170

Total functional expenses 32,463,832$ 4,495,218$ 449,405$ 37,408,455$


Statement of Functional ExpensesYear Ended June 30, 2013


See Notes to Financial Statements. 7

2014 2013

Operating activities:Cash received from patient services 14,064,957$ 12,453,408$ Cash received from pharmacy 29,218,692 22,910,295 Cash received from grants and contract services 5,283,552 4,270,868 Cash received from fundraising and contributions 1,525,696 1,337,921 Cash received from other 255,557 420,723 Cash paid to employees (16,519,925) (13,991,485) Cash paid to vendors (28,701,685) (22,563,928) Cash paid for interest (71,614) (203,853)

Net cash provided by operating activities 5,055,230 4,633,949

Investing activities: Purchases of property and equipment (2,701,269) (210,733) Increase in restricted cash and cash equivalents (1,500,000) -

Net cash used in investing activities (4,201,269) (210,733)

Financing activities: Proceeds from line of credit - 300,000 Repayments of line of credit - (500,000)Proceeds from note payable 999,999 - Repayments of note payable (354,222) (345,538) Repayments to third party (7,514) (94,969)

Net cash provided by (used in) financing activities 638,263 (640,507)

Net increase in cash and cash equivalents 1,492,224 3,782,709

Cash and cash equivalents, beginning of year 5,549,862 1,767,153

Cash and cash equivalents, end of year 7,042,086$ 5,549,862$

Reconciliation of increase in net assets to net cash provided by operating activities:

Increase in net assets 5,794,945$ 6,378,285$ Adjustments to reconcile increase in net

assets to net cash provided by operating activities:Depreciation and amortization 442,134 365,170 Amortization of deferred financing fees 27,142 27,142 Deferred rent 371,753 67,739 Nonoperating revenue from contract services and other grants for capital additions (611,848) (755,874) Provision for bad debts 189,900 327,820 Changes in operating assets and liabilities:

Patient services receivable (257,598) (671,862) Pharmacy and other receivables (380,014) (819,590) Grants and contracts receivable 161,323 (331,699) Prepaid expenses and other current assets (264,117) 61,963 Inventory (60,795) (454,185) Security deposits (9,528) (142,320) Accounts payable and accrued expenses (545,766) 466,438 Accrued compensation 197,699 114,922

Net cash provided by operating activities 5,055,230$ 4,633,949$

Supplemental disclosure of noncash investing and financing activities:

Capital acquisitions included in accounts payable and accrued expenses 147,581$ -$

Capital acquisitions funded through contract services and other grants 611,848$ 755,874$

Statements of Cash FlowsYears Ended June 30, 2014 and 2013



See Notes to Financial Statements. 8



Notes to Financial Statements June 30, 2014 and 2013

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Note 1 - Organization Community Health Project, Inc. (d/b/a Michael Callen - Audre Lorde Community Health Center) ("Callen-Lorde or the "Center") is a community-based healthcare center located in New York, New York. The Center provides high-quality healthcare and related services primarily to the lesbian, gay, bisexual and transgender community of New York in all its diversity, without regard to ability to pay. To further this mission, the Center promotes health education and wellness, and advocates for lesbian, gay, bisexual and transgender health issues.

The U.S. Department of Health and Human Services (the "DHHS") provides substantial support to the Center. The Center is obligated under the terms of the DHHS grants to comply with specified conditions and program requirements set forth by the grantor.

Note 2 - Significant accounting policies

Basis of presentation The accompanying financial statements have been prepared on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America.

Use of estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

Classification of net assets The Center classifies its net assets into three categories, which are described as follows:

Unrestricted net assets are reflective of revenues and expenses associated with the principal operating activities of the Center and are not subject to donor-imposed stipulations.

Temporarily restricted net assets are subject to donor-imposed stipulations that may or will be met either by actions of the Center and/or the passage of time. When a donor restriction expires, temporarily restricted net assets are reclassified to unrestricted net assets and are reported in the statements of activities and changes in net assets as assets released from restriction. Donor-restricted contributions whose restrictions are met within the same year as received are reported as unrestricted contributions in the financial statements.

Permanently restricted net assets are subject to donor-imposed stipulations that must be maintained permanently by the Center. There were no permanently restricted net assets at June 30, 2014 and 2013.




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Cash and cash equivalents The Center maintains its cash and cash equivalents in bank deposit accounts which, at times, may exceed Federally-insured limits. The Center has not experienced any losses in such accounts. At June 30, 2014 and 2013, the Center's cash and cash equivalents balance exceeds Federally-insured limits by approximately $8,337,000 and $5,192,000, respectively. All highly liquid investments with maturities of three months or less when purchased are considered to be cash equivalents.

Patient services receivable and concentration of credit risk The collection of receivables from third-party payors and patients is the Center's primary source of cash for operations and is critical to its operating performance. The primary collection risks relate to uninsured patient accounts and patient accounts for which the primary insurance payor has paid, but patient responsibility amounts (deductibles and copayments) remain outstanding. Patient receivables from third-party payors are carried at a net amount determined by the original charge for the service provided, less an estimate made for contractual adjustments or discounts provided to third-party payors.

Receivables due directly from patients are carried at the original charge for the service provided less discounts provided under the Center's charity care policy, less amounts covered by third-party payors and less an estimated allowance for doubtful receivables. Management determines the allowance for doubtful accounts by identifying troubled accounts and by historical experience applied to an aging of accounts. The Center considers accounts past due when they are outstanding beyond 60 days with no payment. The Center generally does not charge interest on past due accounts. Patient receivables are written off to the allowance account when deemed uncollectible. Recoveries of receivables previously written off are recorded as a reduction of bad debts expense when received.

Charity care and community benefit The Center is open to all patients, regardless of their ability to pay. In the ordinary course of business, the Center renders services to patients who are financially unable to pay for healthcare. The Center provides care to these patients who meet certain criteria under its sliding fee discount policy without charge or at amounts less than the established rates. Charity care services are computed using a sliding fee scale based on patient income and family size.

The Center maintains records to identify and monitor the level of sliding fee discount it provides. For uninsured self-pay patients that do not qualify for charity care, the Center recognizes revenue on the basis of its standard rates for services provided or on the basis of discounted rates, if negotiated or provided by policy. On the basis of historical experience, a significant portion of the Center's uninsured patients will be unable or unwilling to pay for the services provided. Thus, the Center records a significant provision for bad debts related to uninsured patients in the period the services are provided.




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Community benefit represents the cost of services for Medicaid, Medicare, and other public patients for which the Center is not reimbursed.

Based on the cost of patient services, charity care and community benefit for the years ended June 30 amounted to the following:

2014 2013

Charity care $ 786,668 $1,755,591 Community benefit 4,550,257 1,930,665

Grants and contracts receivable Grants and contracts receivable consists of costs under the grant and contract agreements which were incurred prior to year-end for which payment has not been received. Grants and contracts receivable credit risk is limited due to the nature of the grants and contracts. The Center regularly monitors its grants and contracts receivable by investigating delayed payments and differences when payments received do not conform to the amount billed. The Center considers all grants and contracts as collectible.

Fair value of financial instruments The Center's material financial instruments at June 30, 2014 and 2013 for which disclosure of estimated fair value is required by certain accounting standards consists of cash and cash equivalents, patient services receivable, pharmacy receivable, grants and contracts receivable, accounts payable and accrued expenses, accrued compensation, advances from a third party, and note payable to unrelated party. The fair values of cash and cash equivalents, patient services receivable, pharmacy receivable, grants and contracts receivable, accounts payable and accrued expenses and accrued compensation are equal to their carrying value because of their liquidity and short-term maturity. Management believes that the fair value of the note payable to unrelated party does not differ materially from its aggregate carrying value in that substantially all of the obligation bears an interest rate that is based on market rates or interest rates that are periodically adjustable to rates that are based on market rates.

Management believes that as a result of the relationship between the Center and the third party from whom an advance was received, there is no practical method that can be used to determine the fair value of advances from a third party and that the amount is not material to the financial statements.

Inventory Inventory, consisting of supplies and drugs, is stated at the lower of cost (first-in, first-out basis) or market.




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Restricted cash and cash equivalents The Center has cash and cash equivalents the use of which has been limited by the Board of Directors for special and expansion projects.

Property and equipment Property and equipment are stated at cost, or, if donated, at the fair value at the date of donation. Depreciation and amortization are recorded on a straight-line basis over the estimated useful lives of the assets, ranging from 2 to 40 years. Leasehold improvements are amortized on a straight-line basis over the estimated useful life of the improvement or the term of the lease, whichever is less. The Center capitalizes all purchases of property and equipment in excess of $2,500.

Construction-in-progress is recorded at cost. The Center capitalizes construction, insurance and other costs during the period of construction. Depreciation is recorded when construction is substantially complete and the assets are placed in service.

Maintenance, repairs and minor renewals are expensed as incurred. When assets are retired or otherwise disposed of, their costs and related accumulated depreciation and amortization are removed from the accounts and any resulting gains or losses are included in changes in net assets.

According to Federal regulations, any equipment items obtained through Federal funds are subject to a lien by the Federal government. Provided that the Center maintains its tax-exempt status, and the equipment is used for its intended purpose, the Center is not required to reimburse the Federal government. If the stated requirements are not met, the Center would be obligated to the Federal government in an amount equal to the fair value of the equipment.

Impairment of long-lived assets The Center reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. In performing a review for impairment, the Center compares the carrying value of the assets with their estimated future undiscounted cash flows. If it is determined that impairment has occurred, the loss would be recognized during that period. The impairment loss is calculated as the difference between the asset's carrying value and the present value of estimated net cash flows or comparable market values, giving consideration to recent operating performance and pricing trends. The Center does not believe that any material impairment currently exists related to its long-lived assets.

Deferred financing fees Deferred financing fees consist of various expenses the Center incurred in obtaining long-term financing. These costs are being amortized over the expected life of the debt, which is approximately 30 years.




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Deferred rent The Center's lease agreement for a certain building contains escalation clauses that require normalization of the rental expense over the life of the lease. The resulting deferred rent is reflected in the accompanying statements of financial position.

Patient service revenue The Center has agreements with third-party payors that provide for payments to the Center at amounts different from its established rates. Payment arrangements include predetermined fee schedules and discounted charges. Service fees are reported at the estimated net realizable amounts from patients, third-party payors and others for services rendered, including retroactive adjustments under reimbursement agreements with third-party payors, which are subject to audit by administrating agencies. These adjustments are accrued on an estimated basis and are adjusted in future periods as final settlements are determined.

The Center provides care to certain patients under Medicaid and Medicare payment arrangements. Laws and regulations governing the Medicaid and Medicare programs are complex and subject to interpretation. Compliance with such laws and regulations can be subject to future government review and interpretation as well as significant regulatory action. Self-pay revenue is recorded at published charges with charitable care deducted to arrive at gross self-pay revenue. Contractual allowances are then deducted to arrive at net self-pay patient revenue before provision for bad debts.

Pharmacy receivable and revenue The Center participates in Section 340B of the Public Health Service Act ("PHS Act"), Limitation on Prices of Drugs Purchased by Covered Entities. Participation in this program allows the Center to purchase pharmaceuticals at discounted rates for prescriptions to eligible patients. Pharmacy revenue is generated through the pharmacy and 340B program that the Center operates through its agreement with a third party for the years ended June 30, 2014 and 2013. Under this program, the Center uses the third party as its agent for the purpose of operating and managing the pharmacy and providing pharmacy services. The Center recognized pharmacy revenue of $29,598,706 and $23,729,885 for the years ended June 30, 2014 and 2013, respectively, and other receivables of $2,390,453 and $2,010,439 as of June 30, 2014 and 2013, respectively.

Grants and contracts revenue Revenue from government grants and contracts designated for use in specific activities is recognized in the period when expenditures have been incurred in compliance with the grantor's restrictions. Grants and contracts awarded for the acquisition of long-lived assets are reported as unrestricted nonoperating revenue, in the absence of donor stipulations to the contrary, during the fiscal year in which the assets are acquired. Cash received in excess of revenue recognized is recorded as refundable advances. At June 30, 2014, the Center has received conditional grants and contracts from governmental entities in the aggregate amount of $2,423,239 that have not been recorded in the accompanying




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financial statements. These grants and contracts require the Center to provide certain services during specified periods. If such services are not provided during the periods, the governmental entities are not obligated to expend the funds allotted under the contracts.

Contributions Contributions are recorded as either temporarily or permanently restricted revenue if they are received with donor stipulations that limit the use of the donated asset. Contributions received with no donor stipulations are recorded as unrestricted revenue. When a donor restriction expires, that is, when a stipulated time restriction ends or purpose restriction is accomplished, temporarily restricted net assets are reclassified as unrestricted net assets and are reported in the statements of activities and changes in net assets as net assets released from restriction. Donor-restricted contributions whose restrictions expire during the same fiscal year are recognized as unrestricted revenue.

In-kind contributions Donated vaccines are recognized in the accompanying financial statements based on fair value.

Meaningful use incentives The American Recovery and Reinvestment Act of 2009 ("ARRA") amended the Social Security Act to establish one-time incentive payments under the Medicare and Medicaid programs for certain professionals that: (1) meaningfully use certified EHR technology, (2) use the certified EHR technology for electronic exchange of health information to improve quality of healthcare and (3) use the certified EHR technology to submit clinical and quality measures. These provisions of ARRA, together with certain of its other provisions, are referred to as the Health Information Technology for Clinical and Economic Health ("HITECH") Act. The criteria for meaningful use incentives will be staged in three steps over the course of six years and be paid out based on a transitional schedule. The Center's providers have met the criteria for Year 1 and have earned $191,250 from the Medicaid incentive program for the year ended June 30, 2014, which is included in other revenue on the statement of activities and changes in net assets.

Performance indicator The statements of activities and changes in net assets include operating income prior to non-operating revenue as the performance indicator. Changes in unrestricted net assets which are excluded from the performance indicator include contract services and other grants for capital additions.

Interest earned on Federal funds Interest earned on Federal funds is recorded as a payable to the United States Public Health Service (the "PHS") in compliance with the regulations of the United States Office of Management and Budget.




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Functional expenses Expenses are charged to program, general and administrative or fundraising based on a combination of specific identification and allocation by management.

Reclassifications Certain reclassifications have been made to the 2013 balances to conform to the 2014 presentation.

Tax status The Center was incorporated as a not-for-profit corporation under the laws of the State of New York and is exempt from Federal income taxes under Section 501(c)(3) of the Internal Revenue Code. Therefore, there is no provision for income taxes.

The Center has no unrecognized tax benefits at June 30, 2014 and 2013. The Center's Federal and state income tax returns prior to fiscal year 2011 are closed and management continually evaluates expiring statutes of limitations, audits, proposed settlements, changes in tax law and new authoritative rulings.

The Center recognizes interest and penalties associated with tax matters as operating expenses and includes accrued interest and penalties with accrued expenses in the statements of financial position.

Subsequent events The Center has evaluated subsequent events through February 12, 2015, which is the date the financial statements were available to be issued.

Note 3 - Patient services receivable, net

Patient services receivable, net consist of the following at June 30: 2014 2013

Medicaid $ 907,138 $ 569,415 Medicare 178,236 202,970 Private insurance 210,110 129,888 Self-pay 100,272 70,730 Managed Care 643,119 774,100

Totals 2,038,875 1,747,103 Less allowance for doubtful accounts 788,105 778,431

Totals 1,250,770 968,672 New York State Uncompensated Care 1,295,020 1,509,420

Totals $2,545,790 $2,478,092




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Patient services receivable are reduced by an allowance for doubtful accounts. In evaluating the collectability of patient services receivable, the Center analyzes its past history and identifies trends for each of its major payor sources of revenue to estimate the appropriate allowance for doubtful accounts and provision for bad debts. Management regularly reviews data about these major payor sources of revenue in evaluating the sufficiency of the allowance for doubtful accounts. For receivables associated with services provided to patients who have third-party coverage, the Center analyzes contractually due amounts and provides an allowance for doubtful accounts and a provision for bad debts, if necessary (for example, for expected uncollectible deductibles and copayments on accounts for which the third-party payor has not yet paid, or for payors who are known to be having financial difficulties that make the realization of amounts due unlikely).

For receivables associated with self-pay patients (which include both patients without insurance and patients with deductible and copayment balances due for which third-party coverage exists for part of the bill), the Center records a significant provision for bad debts in the period of service on the basis of its past experience, which indicates that many patients are unable or unwilling to pay the portion of their bill for which they are financially responsible. The difference between the standard rates or the discounted rates provided by the Center's policy and the amounts actually collected after all reasonable collection efforts have been exhausted is charged against the allowance for doubtful accounts.

The Center's allowance for doubtful accounts was 24% of patient services receivable as of June 30, 2014 and 2013. The Center had $180,226 and $242,229 of direct write-offs for the years ended June 30, 2014 and 2013, respectively. The Center has not changed its charity care or uninsured discount policies during fiscal year 2014.

Note 4 - Grants and contracts receivable

Grants and contracts receivable consist of the following at June 30: 2014 2013

New York State Department of Health $ 420,160 $ 338,720 New York City Department of Health 499,539 687,113 Lutheran Medical Center 123,468 123,468 Other 369,668 424,857

Totals $1,412,835 $1,574,158




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Note 5 - Property and equipment, net Property and equipment, net, consists of the following at June 30:

2014 2013

Land $ 1,000,000 $ 1,000,000 Building and building improvements 8,170,466 8,120,759 Furniture and equipment 3,290,819 2,948,594 Construction-in-progress 4,014,646 946,726

Totals 16,475,931 13,016,079 Less accumulated depreciation 6,146,038 5,704,750

Totals $10,329,893 $ 7,311,329

Construction-in-progress includes a building under construction that is funded under a grant from the City of New York. The corresponding revenue for the years ended June 30, 2014 and 2013 amounted to $611,848 and $755,874, respectively, is included in non-operating revenue in the statements of activities and changes in net assets. Amounts were paid directly to the contractor by the City of New York.

In the event the DHHS grants are terminated, the DHHS reserves the right to transfer all property and equipment purchased with grant funds to the PHS or third parties.

For the year ended June 30, 2014, the Center incurred interest of $211,175, of which $112,419 was capitalized.

Note 6 - Line of credit

The Center has a revolving line of credit available in the amount of $1,500,000 which expired on February 1, 2015 and was not subsequently renewed. This agreement required interest to be charged at the greater of the national average prime rate (3.25% at June 30, 2014) plus 2%, or 6.75% per annum (6.75% at June 30, 2014). The debt was collateralized by a second priority security interest in the Center's New York State bad debt and charity care receivables and patient accounts receivable. There was no outstanding balance on this line of credit at June 30, 2014 and 2013.




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Note 7 - Note payable On September 14, 1995, the Center purchased a 27,000-square-foot building located at 356 West 18th Street in New York, New York. Completion of improvements to the property allowed the Center to consolidate its operations at a single location on March 2, 1998.

Long-term debt consists of the following at June 30:

2014 2013

On September 14, 1995, the Center obtained permanent financing for its facility. On that date, the Center entered into a ground lease and a construction disbursement agreement with the Dormitory Authority of the State of New York ("DASNY"). DASNY's disbursements to the Center under these agreements, which were financed through DASNY's issuance of bonds, totaled $7,630,000. Under these agreements, the Center makes lease payments to DASNY in amounts equal to the principal and interest payments required under the bonds through April 1, 2023. On August 26, 2010, the DASNY bonds were refinanced through the issuance of new DASNY bonds. Under the new bonds, the Center's security deposit for the lease, held by DASNY through its intermediary was reduced to $261,251, which is included in the statements of financial position under security deposits. Also, the monthly amortization amounts (for principal and interest) were reduced with an average interest rate over the remaining term of the debt expected to be 3.56%.

$3,780,916

$4,135,138

The Center entered into a note payable with a face amount of $999,999 on February 12, 2014 with an original maturity date of February 1, 2021. The loan requires equal monthly payments of principal and interest of $16,221, which includes interest at 5.25%, beginning on February 1, 2015. The loan is collateralized by the Center's New York State bad debt and charity care receivables and patient accounts receivable. The Center paid the entire balance of the loan on February 3, 2015.

999,999

-

Totals 4,780,915 4,135,138 Less current maturities 414,814 354,223 Long-term portion $4,366,101 $3,780,915




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The aggregate amount of principal payments of long-term debt in each of the five years subsequent to 2014 and thereafter is as follows:

Year Ending June 30, Amount

2015 $ 414,814 2016 529,782 2017 554,068 2018 581,151 2019 607,371 Thereafter 2,093,729

Total $4,780,915

Callen-Lorde is required to comply with certain covenants under its line of credit and note payable.

Note 8 - Due to third party

Amounts due to third party pertain to amounts owed to a vendor operating and managing the 340B program. A portion of the amount due to the third party is a $250,000 non-interest bearing loan, payable over a period of five years, amortized monthly in the amount of $4,167, with an outstanding balance of $50,088 as of June 30, 2014. Total payments due to third party within one year subsequent to June 30, 2014 amounts to $159,240.

Note 9 - Temporarily restricted net assets

The Center receives contributions from various funders designated for program specific purposes. The following consists of the unspent restricted funds as of June 30:

2014 2013

Outreach and Enrollment Program $ 20,599 $ - Program for Integration of Health and Mental Health Services - 52,270 MMU Care Coordination Program 34,534 35,381 Health Information Technology Capacity Building Projects - 15,205 Breast Cancer Screening Project 16,861 1,615 Transgender Patient Data Project - 11,964 Transgender Case Management 60,000 60,000 Mental Health Expansion Project - 54,253 Transgender Health Protocols Project - 10,000

Totals $ 131,994 $ 240,688




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Note 10 - Patient services revenue, net For the years ended June 30, 2014 and 2013, the Center recognized patient services revenue, net of contractual allowances and discounts (but before the provision for bad debts) for the following major payors:

2014 2013

Medicaid $ 3,491,466 $ 3,065,761 Medicaid managed care 2,460,867 1,924,611 Medicare 445,451 388,934 Private insurance 962,977 964,689 Self-pay 691,080 566,394

Totals 8,051,841 6,910,389

New York State Uncompensated Care 2,844,694 2,637,552 New York State Medicaid Managed Care

Wraparound 3,426,020 3,577,329

Totals $14,322,555 $13,125,270

Medicaid and Medicare revenue is reimbursed to Callen-Lorde at the net reimbursement rates as determined by each program. Reimbursement rates are subject to revisions under the provisions of reimbursement regulations. Adjustments for such revisions are recognized in the fiscal year incurred.

Note 11 - Contract services and other grants revenue

Contract services and other grants revenue consist of the following for the years ended June 30:

2014 2013

New York City Department of Health $ 1,741,646* $ 2,169,001* New York State Department of Health 1,541,967 1,564,902 Lutheran Medical Center: CHC Program 493,872 493,872 Other 760,428 293,355

Totals $ 4,537,913 $ 4,521,130

*New York City Department of Health includes nonoperating revenue of $611,848 and $755,874 for 2014 and 2013, respectively.




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Note 12 - DHHS grants For the years ended June 30 2014 and 2013, Callen-Lorde received the following grants from the DHHS:

Total 2014 2013 Grant Number Grant Period Grant Revenue Revenue

6 H76HA00636-14-01 07/01/13 – 04/30/14 $307,962 $ 307,962 6 H76HA00636-15-01 05/01/14 – 04/30/15 361,955 47,009 1U65PS003571-01 09/30/11 – 09/29/12 175,267 $66,849 5 H97HA00636-13-03 07/01/12 – 06/30/13 379,005 379,005 6H12HA24871-01-03 08/01/12 – 07/31/13 350,000 85,815 264,185 6H12HA24871-02-01 08/01/13 – 07/31/14 331,902 288,326 1H97HA24983-01-00 09/01/12 – 08/31/13 80,000 19,954 60,046 5U65PS003571-02 09/30/12 – 09/29/13 174,936 107,710 67,226 5U65PS003571-03 09/30/13 – 09/29/14 161,135 99,585 1U51PS003826-01 08/01/13 – 07/31/15 686,985 239,803

Totals $1,196,164 $837,311

Note 13 - Fundraising and contributions

Fundraising and contributions revenue consists of the following for the years ended June 30:

2014 2013

Fundraising $ 436,809 $ 461,908 Contributions 1,088,886* 743,374* Donated vaccines - 132,639

Totals $ 1,525,695 $ 1,337,921

*Includes temporarily restricted contributions amounting to $384,356 and $488,577 for 2014 and 2013, respectively. See Note 9 for more details.




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Note 14 - Leases In May 2013, the Center entered into a noncancelable operating lease of a facility with a term of eleven years. Rent expense amounted to $371,753 and $67,739 for the years ended June 30, 2014 and 2013, respectively. In addition, the Center leases equipment under a five-year lease term. The leases require future minimum payments as follows:

Year Ending June 30, Amount

2015 $ 355,020 2016 425,844 2017 429,800 2018 436,247 2019 446,308 Thereafter 2,352,440

Total $4,445,659

The lease for one of the Center's spaces includes scheduled base rent increases over the term of the lease. The total amount of the base rent payments is being charged to expense on the straight-line method over the term of the lease. The Center has recorded deferred rent to reflect the excess of rent expense over payments since inception of the lease.

Note 15 - Commitments and contingencies

Callen-Lorde has contracted with various funding agencies to perform certain healthcare services, and receives Medicaid and Medicare revenue from the state and Federal governments. Reimbursements received under these contracts and payments under Medicaid and Medicare are subject to audit by the Federal and state governments and other agencies. Upon audit, if discrepancies are discovered, Callen-Lorde could be held responsible for reimbursing the agencies for the amounts in question.

Callen-Lorde maintains its medical malpractice coverage under the Federal Tort Claims Act ("FTCA"). FTCA provides malpractice coverage to eligible PHS-supported programs and applies to the Center and its employees while providing services within the scope of employment included under grant-related activities. The Attorney General, through the U.S. Department of Justice, has the responsibility for the defense of the individual and/or grantee for malpractice cases approved for FTCA coverage. The Center purchases professional and general liability insurance to cover medical malpractice claims in excess of the FTCA coverage. There are no known claims or incidents that may result in the assertion of additional claims arising from services provided to patients as of June 30, 2014.




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The healthcare industry is subject to voluminous and complex laws and regulations of Federal, state and local governments. Compliance with such laws and regulations can be subject to future government review and interpretation as well as regulatory actions unknown or unasserted at this time. These laws and regulations include, but are not necessarily limited to, matters such as licensure, accreditation, government healthcare program participation requirements, reimbursement laws and regulations, anti-kickback and anti-referral laws, and false claims prohibitions. In recent years, government activity has increased with respect to investigations and allegations concerning possible violations of reimbursement, false claims, anti-kickback and anti-referral statutes and regulation by healthcare providers. Callen-Lorde believes that it is in material compliance with all applicable laws and regulations and is not aware of any pending or threatened investigations involving allegations of potential wrongdoing. Upon audit, if discrepancies are discovered, Callen-Lorde could be held responsible for refunding the amount in questions.

Note 16 - Pension plan

Callen-Lorde maintains a contributory defined contribution retirement plan covering substantially all its employees. Participants are always fully vested in their contributions to the plan and benefits are limited to plan assets. Callen-Lorde does not contribute to the plan.

Federal Grantor / Pass-Through Grantor / Program Title

Federal CFDA

NumberAgency or Pass-Through

Grantor's NumberFederal

Expenditures

U.S. Department of Health and Human Services:Direct programs:

Grants to Provide Outpatient Early InterventionServices with Respect to HIV Disease 93.918 N/A 354,971$

Coordinated Services and Access to Research for Women, Infants, Children and Youth 93.153 N/A 374,141

Special Projects of National Significance 93.928 N/A 19,954

Adult Viral Hepatitis Prevention and Control 93.270 N/A 239,803

HIV Prevention Activities - Non Governmental Organization Based 93.939 N/A 207,295

Passed through Sunset Park Health Council, Inc.:Health Centers Cluster: Consolidated Health Centers 93.224 Not Available 378,541 Affordable Care Act (ACA) Grants for New and Expanded Services Under the Health Center Program 93.527 Not Available 115,331

Subtotal Health Centers Cluster 493,872

Passed through Public Health Solutions:HIV Emergency Relief Project Grants 93.914 09-MCM-707 504,411

Family Planning Services 93.217 13-CALLEN-01 110,949

HIV Demonstration, Research, Public and Professional Education Projects 93.941 14-CL-01 3,402

HIV Prevention Activities - Health DepartmentBased 93.940 11-HTR-707/13-SBH-707 305,284

Substance Abuse and Mental Health Services Projects of Regional andNational Significance 93.243 13-SBH-707 156,150

Preventive Health Services - Sexually Transmitted Diseases ControlGrants 93.977 13-CL-01/14-CL-02 97,202

Passed through Research Foundation of The City University of New York:Alcohol Research Programs 93.273 41830-A 264,575

Passed through Research Foundation of the City University of New York on behalf of Hunter College:

Drug Abuse and Addiction Research Program 93.279 7F034C/41821-A 40,462

Passed Through New York State Department of Health Office of Health Insurance Programs:

Medical Assistance Program 93.778 C027812/C028917 79,864

Children's Health Insurance Program (CHIP) 93.767 C027812 35,614 Passed Through New York State Department of Health

Children's Health Insurance Program (CHIP) 93.767 C028917 3,028

Subtotal CFDA Number 93.767 38,642

State Planning and Establishment Grants for the Affordable Care Act (ACA)'s Exchanges 93.525 C028917 217,370

Passed Through Research Foundation for Mental Hygiene, Inc.:Mental Health Research Grants 93.242 1R01MH102161-01A1 3,454

Passed Through Columbia University of the City of New York:Mental Health Research Grants 93.242 5-30547 46,899

Subtotal CFDA Number 93.242 50,353

Total Federal awards - U.S. Departmentof Health and Human Services 3,558,700$


Schedule of Expenditures of Federal AwardsYear Ended June 30, 2014


See Notes to Schedule of Expenditures of Federal Awards.

24



Notes to Schedule of Expenditures of Federal Awards June 30, 2014

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Note 1 - General information The accompanying schedule of expenditures of Federal awards (the "Schedule") presents the activities in Federal awards of Callen-Lorde. All financial assistance received directly from Federal agencies, as well as financial assistance passed through other governmental agencies or nonprofit organizations, are included in the Schedule.

Note 2 - Basis of accounting

The accompanying Schedule is presented using the accrual basis of accounting. The information in the Schedule is presented in accordance with the requirements of OMB Circular A-133, Audit of States, Local Governments, and Non-Profit Organizations. The amounts reported in the Schedule as expenditures may differ from certain financial reports submitted to Federal funding agencies due to those reports being submitted on either a cash or modified accrual basis of accounting.

Note 3 - Relationship to the financial statements

Federal expenditures are reported on the statement of functional expenses. In certain programs, the revenues reported in the basic financial statements may differ from the expenditures reported in the Schedule due to program expenditures exceeding grant or contract budget limitations or agency matching or in-kind contributions which are not included in the Schedule.

Note 4 - Subrecipients

Of the Federal expenditures presented in this Schedule, Callen-Lorde provided no Federal awards to subrecipients.

26

Independent Auditor's Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements

Performed in Accordance with Government Auditing Standards To the Board of Directors Community Health Project, Inc. (d/b/a Michael Callen - Audre Lorde Community Health Center) We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of Community Health Project, Inc. (d/b/a Michael Callen - Audre Lorde Community Health Center) ("Callen - Lorde" or the "Center"), which comprise the statement of financial position as of June 30, 2014, and the related statements of activities and changes in net assets, functional expenses and cash flows for the year then ended, and the related notes to the financial statements, and have issued our report thereon dated February 12, 2015. Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the Center's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Center's internal control. Accordingly, we do not express an opinion on the effectiveness of the Center's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

27

Compliance and Other Matters As part of obtaining reasonable assurance about whether the Center's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose.


28

Independent Auditor's Report on Compliance for Each Major Federal Program

and Report on Internal Control over Compliance Required by OMB Circular A-133

To the Board of Directors Community Health Project, Inc. (d/b/a Michael Callen - Audre Lorde Community Health Center) Report on Compliance for Each Major Federal Program We have audited Community Health Project, Inc.'s (d/b/a Michael Callen - Audre Lorde Community Health Center) ("Callen - Lorde" or the "Center") compliance with the types of compliance requirements described in the OMB Circular A-133 Compliance Supplement that could have a direct and material effect on each of the Center's major Federal programs for the year ended June 30, 2014. The Center's major Federal programs are identified in the summary of auditor's results section of the accompanying schedule of findings and questioned costs. Management's Responsibility Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants applicable to its Federal programs. Auditor's Responsibility Our responsibility is to express an opinion on compliance for each of the Center's major Federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the Center's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for each major Federal program. However, our audit does not provide a legal determination of the Center's compliance.

29

Opinion on Each Major Federal Program In our opinion, the Center complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major Federal programs for the year ended June 30, 2014. Report on Internal Control Over Compliance Management of the Center is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the Center's internal control over compliance with the types of requirements that could have a direct and material effect on each major Federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major Federal program and to test and report on internal control over compliance in accordance with OMB Circular A-133, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the Center's internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a Federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a Federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a Federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of OMB Circular A-133. Accordingly, this report is not suitable for any other purpose.




Schedule of Findings and Questioned Costs Year Ended June 30, 2014

30

Section I - Summary of Auditor's Results Financial Statements: Type of auditor's report issued: Unmodified

• Material weakness(es) identified? yes no • Significant deficiency(ies) identified? yes none reported

Noncompliance material to financial statements noted? ___ yes no Federal Awards: Internal control over major programs:

• Material weakness(es) identified? yes no • Significant deficiency(ies) identified? yes none reported

Type of auditor's report issued on compliance for major programs: Unmodified Any audit findings disclosed that are required to be reported in accordance with Section 510(a) of OMB Circular A-133? __ yes _ no Identification of major programs: CFDA Number(s) Name of Federal Program Health Centers Cluster: 93.224 Consolidated Health Centers 93.527 Affordable Care Act (ACA) Grants

for New and Expanded Services Under the Health Center Program 93.914 HIV Emergency Relief Project Grants 93.918 Grants to Provide Outpatient Early Intervention Services with Respect to HIV Disease 93.940 HIV Prevention Activities - Health Department Based 93.153 Coordinated Services and Access to Research for Women, Infants, Children and Youth



Schedule of Findings and Questioned Costs Year Ended June 30, 2014

31

Dollar threshold used to distinguish between type A and type B programs $300,000 Auditee qualified as low-risk auditee? __ yes no Section II - Financial Statement Findings None Section III - Federal Award Findings and Questioned Costs None



Status of Prior Year's Findings Year Ended June 30, 2014

32

Finding Number Condition Status 2013-1 Program Income and Eligibility This condition was corrected in the current year.

Documents

Community Health Project, Inc. (d/b/a Michael Callen ... · (d/b/a Michael Callen - Audre Lorde Community Health Center) ("Callen-Lorde"), which comprise the statements of financial